Aura Renewable Acquisiti... Investors - ARA

Aura Renewable Acquisiti... Investors - ARA

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Stock Name Stock Symbol Market Stock Type
Aura Renewable Acquisitions Plc ARA London Ordinary Share
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0.00 0.0% 6.00 07:30:22
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Posted at 16/1/2023 14:29 by hedgehog 100
A good positive update today from ARA, which has currently lifted the share price back up to 6p (5.5p - 6.5p), on volume of 80,000 shares traded, all of which are buys.

And well done to the company on such refreshingly good cash conservation.

From ARA's 5th. April 2022 prospectus:-
"The Company recorded an audited total comprehensive loss of £23,734 for the financial period ended on 30 November 2021 and as at 30 November 2021 had net assets of £26,266."
"Estimated Net Proceeds of the Placing and Subscription £828,000"
"On Admission, the Company will have an additional cash amount of £50,000 available for use in making an Acquisition, being the proceeds from the issues of shares in November 2021."

From today's ARA RNS:-
"As of 31 December 2022, the Company had an unaudited cash balance of GBP809,000, reflective of the minimal overhead base following the listing."

= Cash burn of c. £45K., 1.12.21 - 31.12.22, excluding the one-off IPO costs taken off the gross IPO placing proceeds.

From ARA's prospectus dated 5 April 2022, re all four directors:-

" ... not entitled to a fee until the first Acquisition has been completed, at which time his subsequent entitlement to a fee will be considered by the Nomination and Remuneration Committee. ..."

HTTP://aurarenewables.com/investors/


16/01/2023 07:00 UK Regulatory (RNS & others) Aura Renewable Acquisitions PLC Post Year End Operational Update LSE:ARA Aura Renewable Acquisitions Plc

"Aura Renewable Acquisitions plc, a UK-based company whose objective is to invest in the global renewable energy sector supply chain and thereby build shareholder value, is pleased to provide an update on progress for the period from the date of incorporation on 4 November 2021 through to 31 December 2022.

Aura was formed as a special-purpose acquisition company focusing on the Global Renewable Energy Sector Supply Chain, particularly on businesses in the wind, solar, biomass, hydropower, carbon capture, waste management, energy storage, smart grid and green hydrogen supply chain.

The Company raised gross proceeds of GBP1 million on admission to the Standard Segment of the Official List of the Financial Conduct Authority and to trading on the Main Market for listed securities of the London Stock Exchange in April 2022. As of 31 December 2022, the Company had an unaudited cash balance of GBP809,000, reflective of the minimal overhead base following the listing.

The Company has actively and selectively reviewed potential international acquisition targets since listing and at the same time the Board has taken soundings from the investor community to seek to best fit investment appetite with the opportunities available.

Amongst others, and by way of example, companies in the energy storage sector, developing next-generation battery technologies, have drawn the Company's attention. Batteries play an essential role in the energy sector supply chain, facilitating the transition to a net zero economy and a more sustainable environment.

Many countries, including the United States and the United Kingdom, have realised the importance of secure domestic supply chains and have introduced legislation, government grants and other incentives to support their battery industries - an example being the Inflation Reduction Act under the President Biden Administration.

Our investment horizon is relatively wide within our chosen sector, and we will continue to assess and qualify what we believe to be value accretive opportunities in the UK and overseas. When our ongoing evaluation and investigation result in the potential for a transaction, the Company will give the market appropriate notice.

The Company expects to announce its results for the period ended 31 December 2022 in early April 2023.

John Croft, the Chairman of Aura commented:

"As we move further into our first full year of operation, Aura continues to explore a range of target acquisitions and investments which the Board considers could offer the potential for significant growth in this exciting, fast-moving and crucially important market sector.

"We expect supply chain, inflation and interest rate issues to be less of a dampening factor on corporate activity in 2023, and believe that capital market activity and fundraisings will slowly recover as the year progresses. Hostilities in Europe and further afield, the lingering impact of Covid, especially in China, are still causes for concern, as is the irrefutable and increasingly evident daily impact of climate change.

"As I have mentioned before, we are more confident than ever that the renewable energy sector will offer excellent opportunities for acquisitive and organic growth for the foreseeable future. We are striving to give the Company and its stakeholders the chance to share in these opportunities, not least to help in some small way to protect our planet for future generations."

Publication on website

A copy of this announcement is also available on the Company's website at hxxp://www.aurarenewables.com."

https://uk.advfn.com/stock-market/london/aura-renewable-acquisiti-ARA/share-news/Aura-Renewable-Acquisitions-PLC-Post-Year-End-Oper/89981908
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Posted at 05/1/2023 18:45 by hedgehog 100
Chinahere,

It's fairly common for shells to target a particular sector etc., although this can be flexible when appropriate/necessary.
The focus can relate to the particular expertise-contacts-interests of the directors-investors, &/or what they think may be attractive from an investment viewpoint.
Focussing can also reduce the search to a more manageable level.

For any business wishing to potentially reverse into ARA, the logical first port of call would be to contact the shell company directly, and to then take it from there: i.e. initial assessment, potentially progressing to due diligence etc.

Obviously any overpriced new issue, be it RTO or IPO, is likely to underperform compared to a good value new issue, other things being equal.
But a key determinant of performance is how the company performs on a business level. Some of the best performing shares of all time have looked far from cheap at their floatation prices; whereas some shares that have looked cheap at float have failed to deliver.
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Posted at 04/1/2023 11:38 by hedgehog 100
Thanks for your input, Chinahere.

The important thing is that ARA should have enough cash to arrange an RTO this year, subject of course to identifying a suitable target, and agreeing terms, etc.
If it does, then from the current level (5.5p mid) you would expect a decent share price uplift.
If it fails this year, thereby prolonging its life as a shell, then in 2024+ it may seek to top up its coffers, but I wouldn't regard that as an immediate concern.

From the Aura Renewable Acquisitions plc prospectus, dated 5 April 2022, page 37:-

"The Directors believe that the Company’s cash at bank at Admission will enable the Company to undertake preliminary due diligence on a number of potential targets and to execute its first Acquisition. It is likely that some due diligence fees will be payable on completion of the relevant Acquisition, and the Board would expect the target in each case to carry part of this risk, but there may be certain due diligence fees which have to be incurred upfront, and whilst the Company will seek to agree abort arrangements with providers of legal, financial and technical due diligence services, these may be significant. The Board considers that the Net Proceeds should be sufficient to undertake preliminary due diligence on a number of potential transactions and to carry out substantive due diligence on at least two preferred targets. If significant costs have been incurred without an Acquisition being completed in the longer term, the Board may need to seek additional finance to carry out further due diligence or complete a transaction, but this is considered unlikely. Follow on acquisitions would be financed either from cash flow generated at the time, the issue of new Ordinary Shares or debt financing, or a combination of two or more of those.

The Directors may, at the time an Acquisition is completed, seek to raise further funds by way of equity and/or debt in order to support the then enlarged group’s increased working capital requirements."

HTTP://aurarenewables.com/Investor-Documents/Prospectus.pdf

HTTP://aurarenewables.com/investors
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Posted at 09/10/2022 12:50 by hedgehog 100
From the Aura Renewable Acquisitions plc prospectus, dated 5 April 2022:-

"(iii) The Company has conditionally raised gross proceeds of £1,000,000 ... Under the terms of the Placing, Placees are entitled to receive one Freely Transferable Warrant for each New Ordinary Share subscribed for at no additional cost.
..."

"*Number of Ordinary Shares subject to Warrants 12,780,000"

HTTP://aurarenewables.com/Investor-Documents/Prospectus.pdf

HTTP://aurarenewables.com/investors/

The large majority of these warrants are exercisable at a share price of 15p/share.
And the others require the market price to have exceeded 15p for some time, and for the first acquisition to have been completed.


In relation to its IPO placing price of 10p, the ARA 'warrants premium' is similar to the situation at TMOR: where the IPO placing price was 1p, and the vast majority of the warrants are 'investor warrants', exercisable at a price of 1.5p/warrant.


So TMOR's proposed RTO at a share price of 2.25p clearly brings its warrants into play.
And this will doubtless be the aim of ARA: i.e. a RTO at a good premium to 15p, to bring its own warrants into play.
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Posted at 22/9/2022 15:34 by hedgehog 100
"'Demand has never been higher': How the energy crisis is proving an 'accelerant' for renewable energy

James Murray
02 August 2022 • 7 min read

Latest data from BloombergNEF reveals 11 per cent increase in global renewable energy financing, as investment reaches record levels - is a tipping point being reached?

The global economic outlook may be worryingly bleak, but there is still little evidence that inflation and dwindling investor confidence are impacting the booming renewables market as investment continued..."

HTTP://www.businessgreen.com/news-analysis/4054207/demand-energy-crisis-proving-accelerant-renewable-energy
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Posted at 14/7/2022 06:12 by burtond1
SPAC's : Down but not out say @TMSreach"...But investors prepared to exercise due diligence, and looking to get in early before the market tide turns once again towards more speculative ventures, might want to have a look at the some of the UK's smaller SPACs. It is important to note that such companies can apply for exemptions from the FCA rules requiring that SPACs list with a minimum market capitalisation of £30m..."https://total-market-solutions.com/2022/07/spacs-down-but-not-out/
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Posted at 09/6/2022 16:18 by hedgehog 100
The current global supply chain challenges have highlighted the importance of supply chain management, which could create opportunities for investors, and for ARA:-

13.4.22:-
" ...Withana though says there’s not one, but several key differentiators between Aura and its peers. “We are the only global renewable energy SPAC focused on the supply chain, and I would challenge anyone to tell us there’s an analogue to us on the London market because we know that’s not true,” says Withana ..."
HTTP://total-market-solutions.com/2022/04/aura-renewable-april-2022/


Indeed, as well as ARA, today's third highest riser RGP (up 13%) is also targeting supply chain management opportunities:-

15/09/2021 14:32 UKREG Ross Group PLC Half-year Report
" ... Throughout the COVID pandemic period, the Group has continued diligently researching and exploring specific supply chain management strategic opportunities; primarily involving potential start-ups, mergers, acquisitions and/or business alliances. ... "
https://uk.advfn.com/stock-market/london/ross-RGP/share-news/Ross-Group-PLC-Half-year-Report/86058008


RGP has a market cap. of £3.96M. at its current share price of 1.7p, over three times its last published assets, despite having zero interim revenue.

And last summer its share price traded at over double that.

Indeed early last year its share price nearly quadrupled in under two months, from 1.05p to 4.1p.
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Posted at 09/6/2022 14:15 by hedgehog 100
13.4.22:-
"Like some of the other SPAC’s that have been blown onto the London Stock Exchange over the past six months, Withana and the rest of the board acquired shares in the company at the same price and on the same terms as all investors coming into the IPO."
HTTP://total-market-solutions.com/2022/04/aura-renewable-april-2022/


ARA has a market cap. quite close to its cash, due to the absence of free shares being given out, and the fact that it is now near its IPO price.

Moreover, its running costs will be refreshingly low, avoiding the sort of cash-burn that can hit many other shells.

So no 'snouts in the trough' here, and every incentive to arrange a tasty RTO ASAP.

Which from this lowly level could mean some pretty big upside.


It seems crazy that this is priced so close to cash, when there's so much potential upside.

But it's still off the radar screens of many investors, having only floated in April.

Though as news get out the audience for the stock should be widened significantly.
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Posted at 08/6/2022 17:40 by hedgehog 100
From ARA's prospectus dated 5 April 2022, re all four directors:-

" ... not entitled to a fee until the first Acquisition has been completed, at which time his subsequent entitlement to a fee will be considered by the Nomination and Remuneration Committee. ..."

Some other prospectus extracts:-

" ... The Directors believe that their existing relationships will enable the Company to access investment opportunities in the Global Renewable Energy Sector Supply Chain. In particular, David Fitzsimmons and Guy Ranawake provide the Board with considerable experience and in-depth knowledge of the global renewable energy market. The Company will continue to conduct research and regularly monitor the renewable energy industry for potential targets. ..."

"Company Strategy

The Company will concentrate on creating value for its Shareholders through the acquisition and effective development of businesses operating within the Global Renewable Energy Sector Supply Chain. The aim is to create value by building a group of significant scale that will serve UK and international markets.

The Company intends to leverage the deep industry knowledge of its Board to undertake due diligence on the commercial attributes of a target entity’s business and the Company will engage professional advisory firms to undertake legal and financial due diligence. The Company anticipates considering a number of potential opportunities but will only seek to move to a more formal but non-binding letter of intent stage with targets which meet its internal acquisition criteria. ..."

HTTP://aurarenewables.com/investors/
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Posted at 07/6/2022 16:26 by hedgehog 100
Poor stock market conditions tend to make it harder to IPO, increasing the attractions of the RTO route, and increasing the bargaining power of shells like ARA.

And meanwhile, the valuations of RTO targets for shells tend to be depressed.

So ironically, the s.p.s of shells like ARA can become depressed at the same time as they are in effect becoming more valuable: more capable of cutting a cracking RTO deal on great terms - i.e. a better shell valuation and lower target valuation, and great quality targets.


Which makes a shell like ARA - with both great cash underpinning and great deal prospects - a great place to 'park funds' at the moment.

Many investors may wish to reduce their exposure to shares in companies with trading businesses, but holding cash for months doesn't give any real direct upside - certainly in the short term.

ARA though has both underpinning, and great potential upside - it could easily multibag from this level on a good deal.

And you don't have to worry about funds being tied up here for a while if you won't be using them anyway.
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